The zero-dollar schemes are not new to Thailand, there were schemes running in the 1990s. What has changed is the benefactors of these schemes. The “scam” has gone through at least 4 district phases.

In Phase one, the outbound tour operators in China bought cheap packages from inbound (Thai) tour operators who would scam the tourists into buying goods and services, during the tour, at highly inflated prices. If they did not buy they would simply be abandoned during the tour

In phase two, the inbound (Thai) tour operators were making so much money from scamming that the competition for these tours became so great that they no longer charged the Outbound (Chinese tour operator’s) for the accommodation or tours, and the Chinese tour operators offered tours at literally the cost of the flights, increasing tourist numbers by a huge factor

In phase three, the competition for business from the inbound tour operators was so fierce that they actually started to pay the Outbound (Chinese) tour companies for each and every tourist they brought to Thailand

The fourth and final phase was that the Chinese tour operators realised that the local (Thai) tour operators had the major share of the cake and were raking in profits “hand over fist”. The Chinese operators decided to take over the entire supply chain and that is where we are today.

Had the Chinese not taken over the supply chain, we would have heard nothing of the scam and the Chinese tourists would have continued to be fleeced into purchasing overpriced goods and services from Thai operators.

I now wonder how quickly we will revert to phase 3 once again lining the pockets of the local tour scammers/operators

"'The two most important days in your life are the day you are born and the day you find out why." - Mark Twain

New benchmark price for Chinese tourists
Members of the Tourism Council of Thailand (TCT), which includes the Association of Thai Travel Agents (ATTA) and the Thai-Chinese Tourism Alliance Association (TCTA), have agreed that the minimum price per person for Chinese tour packages should be 1,000 baht per day.

The Tourism and Sports Ministry will discuss the implementation of this benchmark price in talks with the China National Tourism Administration (CNTA) today.

"We hope the minimum price will help tour agents thrive and stop depending on attracting Chinese tourists with zero-dollar tour packages," said TCT president Ittirit Kinglek.

The minimum price is expected to cover tour agents' expenses as well.

According to the Tourism Department, Chinese tourists stay in Thailand for an average of five days, and spend about 1,000 baht per day on accommodation, food and transportation.

Zero-dollar tourism clampdown is affecting Pattaya’s businesses
The government's ongoing clampdown on zero-dollar tourism is now taking toll on Pattaya with business operators reporting sharp drop of Chinese tourists to the world's famous beach resort.
They claimed Pattaya saw 50% drop this year in the arrival of Chinese tourists.

Pattaya Tourism and Business Association president Sinchai Watanasatsatorn said the Chines long weekend or Golden Week from October 1-9 has seen up to 50% drop in Chinese tourists when their hotel bookings fell drastically by half when compared with last year’s Golden Week.

At the same time the Tourism Authority of Thailand forecast Chinese tourist arrivals in the country this year will drop to 220,000 from 280,000 or 21% decline in last year’s Golden Week.

The sharp drop was a consequence of the zero-dollar tourism clamp down, it said.

A speed boat business operator Suriya Censuree said his clients are mostly Chinese tourists renting boats to Koh Larn.

But now the number dropped sharply, thus resulting in revenue plunging.

Previously an average renting of boats to Koh Larn was 2-3 trips per day, but now it almost gone, he added.

Pattaya floating market also saw 10% decrease of Chinese tourists arriving at the market aboard tour buses, prompting all traders in the market to discuss business adjustment to cope with the fall.

TAT said this year Chinese tourists are expected to fall from the targeted 10.1 million to 9.3 million, a 20% decline and a loss of two billion baht earnings from Chinese tourists.

buksida wrote:Previously an average renting of boats to Koh Larn was 2-3 trips per day, but now it almost gone, he added.

Pattaya floating market also saw 10% decrease of Chinese tourists arriving at the market aboard tour buses, prompting all traders in the market to discuss business adjustment to cope with the fall.

This sort of confirms what I said a few weeks ago. Yes, I agree the hotels, restaurants and transport companies may be Chinese owned/raking in the money. However, they are not entirely tied to zero-dollar schemes, and do spend elsewhere. The fact that money is not spent on the bar scene, just tells me they like a different kind of entertainment.

The guys my son was with were spending well over his entertainment budget. Chiang Mai would be a much poorer place without them, as I guess will Pattaya after reading this article.

But the point still is if the govt has stopped the 'zero dollar'/money going to Chinese companies scheme - less Chinese are coming here, indicating that the stupid figures TAT was quoting doesn't really benefit Thailand as much as they'd like it to - and now even less so.

Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S ThompsonGet out there: On The Road Asia

I disagree. The big boys such as transport, hotels etc may not be benefiting - they're probably doing OK anyway. The small traders would have been benefiting, and this policy is taking the bread out of their mouths.

Four weeks ago I was booking a room in Bangkok for 22 Oct (lowest of low season). So many hotels were advertising last room, or last 2 rooms it was unbelievable. Probably a lie, but they are giving the impression of near full occupancy - hence my comment, "They're probably doing OK anyway."

I believe that many hotels only list a small amount with the booking agencies. That way they hope that they can book direct and save the commission. So when Agoda, or others, say only two left, I believe they mean two that can be booked through agoda. So more than two left, but not a direct lie??!!

migrant wrote:I believe that many hotels only list a small amount with the booking agencies. That way they hope that they can book direct and save the commission. So when Agoda, or others, say only two left, I believe they mean two that can be booked through agoda. So more than two left, but not a direct lie??!!

This is correct, I use Agoda extensively and often no rooms are available but they are available on other web sites and direct with the hotel. The same applies to flights. It all revolves around allocations to different sales agents.

"Live everyday as if it were your last because someday you're going to be right." Muhammad Ali